Ron Lesh, Founder and Managing Director of BGL Corporate Solutions (BGL), Australia's leading provider of company compliance, self-managed superannuation fund (SMSF) and investment portfolio management software, has called the latest raid on our super by the Albanese government Super Theft.
On Tuesday 28 February 2023, the Albanese government announced that earnings on superannuation balances above $3 million will be subject to a 15% tax rate hike to 30% up from the current rate of 15%. This is not a modest change. It is a substantial change to your super.
“The politicians are quick to label companies that make an error in their payroll wage theft - well, I’m calling them out now for Super Theft,” said BGL's Managing Director Ron Lesh. “Apart from breaking an election promise, this new tax would appear to have been their intention before the election. It is unfair to hard-working Australians who have legally saved for their retirement and have accumulated balances through making contributions and smart investing. And just another example of the Albanese government’s total disregard for the financial well-being of Australians.
“Today, this new tax will affect between 80,0000 and 120,000 hard-working Australians. With no indexation applied to the $3 million cap, the Financial Services Council estimates this number will rise to 500,000 over time,” noted Lesh.
"Limiting politicians, public servants and judge's defined benefit pensions to what can be earned with the current $1.7 million balance transfer cap would be a much better way for the Government to raise revenue”, added Lesh.
"Since the Albanese Government came into power, we've already seen huge increases in interest rates, electricity, gas, food and services. With this new tax, I'm deeply concerned Labor will soon come after Australians with changes to negative gearing, franking credits, capital gains tax, wealth or inheritance taxes, or even taxing the value of the family home,” says Lesh.
“So, I urge Australians to stand up and be counted, to share this message with family, friends and workmates and be vigilant in protecting their financial future," concluded Lesh.